Last week, the U.S. dollar became stronger because U.S. inflation data (CPI) was higher than expected. This made people think the U.S. central bank will not cut interest rates soon. As a result, USD/JPY rose to 149.18. Later, there was news that President Trump wanted to fire Jerome Powell, the head of the U.S. central bank. This made the dollar fall for a short time. But when the news was denied, the USD/JPY stayed strong and did not fall much.
Also, in Japan, it is expected that the ruling party may lose its majority in the Upper House election. This made people worry that the government might increase spending, which caused the yen to weaken. That also helped push the USD/JPY up.
This week, people are watching the results of the Japanese election. If the ruling party loses, the yen might go back up. Also, on the 22nd, Powell will give a speech. If his comments or Trump’s reaction are negative, the dollar might get weaker.
Another thing to watch is a signal on the chart called the “cloud twist.” This sometimes means a big change in price direction may come.
If USD/JPY cannot go above the 200-day moving average near 150 yen, it may start to fall again.
Today’s expected USD/JPY range: 148.00 – 149.00 yen
This week’s expected USD/JPY range: 147.00 – 149.70 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.